British businesses are right to be concerned about the rise of Reform UK and should demand far greater scrutiny of the party’s economic plans, according to Liam Byrne, Labor chairman of the House of Commons’ business and trade select committee.
In an interview with The Times, Byrne said that if reform were to become the dominant force of the political right, companies would have to take a much closer look at their policies and credibility. He warned that the business community cannot afford to be complacent when negotiating with a party whose economic approach remains unclear.
“If Reform is to become the dominant party of the right, it is imperative that businesses understand where they are coming from,” Byrne said. “Especially when the economic evidence says that populist, interventionist governments are pretty disastrous for the economy. The next year or two will be very important for the business community to really grapple with the reality of reform.”
His comments come at a time when Reform UK is performing well in the polls and increasing its commitment to the British economy, even as both Labor and the Conservatives seek to rebuild investor confidence after years of economic turmoil.
Reform led by Nigel Farage has begun to court business leaders more actively, although some executives remain cautious. In November, the party’s political director, Zia Yusuf, took part in a high-profile question-and-answer session at the Confederation of British Industry’s annual conference, an appearance that was widely seen as an attempt to demonstrate openness to control by corporate leaders.
The party’s deputy leader, Richard Tice, is scheduled to speak at a city investor event hosted by VSA Capital in January, where he is expected to outline Reform’s thinking on fiscal policy and the broader economy. The event was touted as an opportunity for investors, businesses and policymakers to get involved at a “crucial time” for the UK economy.
Byrne said many business leaders he speaks with are already uneasy. He described them as “quite frightened” at the prospect of Reform coming to power, arguing that the global economic environment was already fragile without the added uncertainty of a party whose spending plans remain opaque.
“A new party like Reform has spending plans that are so unclear,” he said. “There are so many questions about whether this would ultimately be the second part of Liz Truss.”
Reform rejected this characterization. Tice said in a statement that both Labor and the Conservatives had “ruined the public finances” and left the economy in a far worse state than it was before the 2024 general election. He argued that the reform approach would restore discipline to public spending, reduce borrowing costs and eliminate what he described as unnecessary regulation.
“Only reform will bring public spending under control so that the country’s borrowing costs fall,” Tice said. “We will also eliminate many unnecessary regulations that slow growth and raise the cost of living. Then, and only then, will we cut taxes to stimulate growth.”
But for Byrne, the message to business leaders is clear. As the reform’s influence grows, he believes companies need to push the party harder on the details of its promises rather than accepting broad slogans at face value.
